There has been a lot of media (social and otherwise) attention on Sydney housing prices lately. There is speculation on whether there is a property bubble, meaning that prices have already risen above the market value and must soon come crashing down. Or is it just that the recent growth in housing prices was unsustainable (almost certainly in my personal opinion), and prices may just plateau for some time? The one thing that has really been brought to the forefront however, is housing affordability. Certainly for younger Sydneysiders, it is an issue. The question I raise is, what exactly is that issue?

I grew up in Sydney, on the Northern Beaches (Please do not even mention the Sea Eagles performance this year). I remember my mother telling me the story of when my parents bought their first home when they married. When they bought their first home, they bought a rather small unappealing property. Not because they had seen one too many episodes of the block and fancied making money of a renovators delight, but because it was what they could afford. An esky apparently doubled as the kitchen table and I am sure other contents were not glamorous, and served dual purposes.

Now while part of me wants to dispense with this as the baby boomer ramblings somewhat in the ballpark of “In my day we walked 25 miles barefoot in the snow to school!” I find there might be some horrible kernel of truth to it. The majority of Gen Y and those who come after want to have it all (gadgets, houses and holidays). The truth is we can still have all this, but unless we are fortunate enough to be in an incredibly high paid job, it is not going to be in Sydney. Probably not in Melbourne, and you’d have to not be too picky about suburbs to get it in Brisbane or Perth. Adelaide is probably a sound bet.

"Now while part of me wants to dispense with this as the baby boomer ramblings somewhat in the ballpark of “In my day we walked 25 miles barefoot in the snow to school!” I find there might be some horrible kernel of truth to it"

Many did walk to school, over broken ground and without shoe wear of any description. Thongs were a necessary invention.

Fibro allowed hard workers, usually semi-skilled or skilled, to be able to afford homes. The homes were small and without built-in robes, or serveries or extended benches in the kitchen. In fact the stainless steel sink was a feature to be boasted about and double bowl or double drainer (wow!) sinks were only in expensive homes. An electric fridge was saved for.

Some years ago I considered buying the family home (early 60s vintage, SEQld) of one of Australia's mining giants, who was also into heavy earthmoving equipment. Mansions of that day may have had three extra bedrooms, with the parents' BR and probably two others having built-in robes as well. Two bathrooms, but very plain, kitchen larger than usual, but no walk-in pantry or other features. No pool.

If buying new, most low-income purchasers would find that home unacceptable today.

Any doubters might look at the celebrity mansions that are often featured in Hollywood's romantic comedies of the Fifties and Sixties. Every day I drive by hundreds of houses that are larger with more expensive must-have features, features, standard of finish and landscaping and that going through ordinary suburbs housing public bureaucrats, the common professions, tradesmen (ute out front) and semi-skilled (parked trucks in the street).

Very few of these home owners find it necessary to eke out the budget with even the slightest pretence of a veggie garden out back, let alone the practical, productive gardens that were found essential by their parents.

However housing prices in the major capitals, particularly Sydney are made more expensive by demand from large scale, over-enthusiastic, immigration. That is the elephant in the room and it has been the case for years.

Dear Hedgehog,

Sydneysiders have good reason to be upset by
sky-rocketing house prices. The Australian
Bureau of Statistics says that the cost of
entering an already expensive market has jumped
a further 30 per cent since the end of 2012.

However the real reasons are due to a variety of
problems such as limited - land releases, zoning
regulations, development changes, record low interest
rates, and tax breaks to peoperty investors.

The government could allow higher density development,
remove planning restrictions (increae supply), scrap
negative gearing (which only benefits a few) - how can
a home buyer compete with an investor - who raises
the price on a property? And finally restrict overseas
investment. This could all help level the playing field.

Dear Hedgehog,

The Age, Saturday 13th June 2015, had a great
cartoon (Spooner's View) on the subject.

It was a picture of our Treasurer - naked, except for
a towel and a cigar, basking on
a balcony of a mansion.

The heading was:

"What Joe should have said..."

"First you get a good Manufacturing job in
China that pays good money.
Then you buy a house in Sydney."

As long as young people willingly part with up,to $60 per lt for milk, In the form of late's, chances are they will never be in a position to buy a house.

Just walk past virtually any caffe in any capital city on any weekend day and see the number of young ones sipping on late's and munching on $10 eggs and you will soon see why so many can't afford a home.

While we may well have a housing crisis, we also have a spending crisis and this generation just doesn't seem to get the fact that they can't have their cake and eat it.

Today's generation have got it all back to front, they earn their wage, buy their goods and treats then try to buy a house with what's left, whereas the reality is, they should buy their house, then adjust their spending habits based on what's left to spend.

Anyone on a grand a week, which is no longer a huge wage, can afford a house, perhaps not 'the house' but at least 'A' house.

It takes sacrifices to buy a house and many today simply won't make them.